Office of inspector general semiannual report

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Office of inspector general semiannual report
Alternate Title:
NASA office of inspector general semiannual report
United States -- National Aeronautics and Space Administration. -- Office of Inspector General
Place of Publication:
Washington, D.C
NASA Office of Inspector General
Publication Date:
Two issues yearly
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v. : ; 28 cm.


Subjects / Keywords:
Auditing, Internal ( lcsh )
Auditing, Internal ( fast )
serial ( sobekcm )
federal government publication ( marcgt )


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Title from cover.

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University of Florida
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University of Florida
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This item is a work of the U.S. federal government and not subject to copyright pursuant to 17 U.S.C. §105.
Resource Identifier:
21631971 ( OCLC )

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Digital Aerospace Collection


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SpaceX Dragon attached to the International Space Station during the CRS-2 mission. The Orbital Antares rocket for the A-ONE Launch Mission at the Horizontal Integration Facility (HIF) on Wallops Island. Artists rendering of NASAs Orion Multi-Purpose Crew Vehicle (MPCV) in Earth orbit.


SpaceX Dragon attached to the International Space Station during the CRS-2 mission. The Orbital Antares rocket for the A-ONE Launch Mission at the Horizontal Integration Facility (HIF) on Wallops Island. Artists rendering of NASAs Orion Multi-Purpose Crew Vehicle (MPCV) in Earth orbit. FROM THE INSPECTOR GENERAL Since retirement of the Space Shuttle Program, NASA has relied on international partners to transport cargo and crew to the International Space Station (ISS) while the Agency developed transportation programs with private companies. During this reporting period, the commercial cargo and crew efforts in the years ahead. Perhaps the biggest challenge NASA faced during the past year was managing its diverse 2013 under a 6-month continuing resolution that funded the Agency at the previous meetings and interviews. about underutilized facilities at NASA Centers, including wind tunnels, thermal vacuum technology systems. Paul K. Martin




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1 OFFICE OF INSPECTOR GENERAL EXECUTIVE OFFICERRenee N. Juhans INSPECTOR GENERALPaul K. MartinDEPUTY INSPECTOR GENERALGail A. Robinson INVESTIGATIVE COUNSELJames MitzelfeldOFFICE OF MANAGEMENT AND PLANNING ASSISTANT INSPECTOR GENERAL Hugh J. Hurwitz OFFICE OF AUDITS ASSISTANT INSPECTOR GENERAL James L. Morrison FIELD OFFICES Ames Research Center Glenn Research Center Goddard Space Flight Center Jet Propulsion Laboratory Johnson Space Center Kennedy Space Center Langley Research Center Marshall Space Flight Center OFFICE OF INVESTIGATIONS ASSISTANT INSPECTOR GENERAL Kevin H. WintersFIELD OFFICES Ames Research Center Glenn Research Center Goddard Space Flight Center Jet Propulsion Laboratory Johnson Space Center Kennedy Space Center Langley Research Center Marshall Space Flight Center Stennis Space Center COUNSEL TO THE INSPECTOR GENERALFrancis P. LaRocca (OIG) conducts audits, reviews, and investigations of NASA programs and operations to prevent and detect fraud, waste, abuse, and mismanagement and to assist NASA management in promoting and administrative activities. programs and activities and provides supervision to the Assistant Inspectors en-USApril 1September 30, 2013


2 special reviews of NASA programs and personnel. human resources, administrative, and information technology services and support (OA) conducts independent and objective audits and reviews of NASA programs, projects, operations, and contractor activities. In addition, OA waste, abuse, and misconduct that may affect NASA programs, projects, and misconduct. provides legal advice and assistance Protection Ombudsman and in that role he educates Agency employees about prohibitions on retaliation for protected disclosures and about rights and remedies for protected whistleblower disclosures.


3 AUDITS AND INVESTIGATIONS missions. Key challenges on the horizon include the emergence of commercial beyond low Earth orbit. Commercial Cargo: NASAs Management of Commercial Orbital Transportation Services and ISS Commercial Resupply Contracts developing commercial cargo transportation capabilities to the ISS. In the its international partners to provide essential supplies to ISS crews and access to research conducted on the Station. carry cargo to the ISS, NASA used a combination of Space Act Agreements serious enough to affect substantially the missions. adjust its payment schedule to Orbital in light of these delays. In fact, we


4 priced contract. decision to concurrently fund spacecraft systems for up to three cargo dates slip, NASA should adjust the contracts to ensure that payments to the our recommendation. Commercial Cargo: NASAs Management of Commercial Orbital Transportation Services and ISS Commercial Resupply Contracts (IG-13-016, June 13, 2013) NASAs Development of the Multi-Purpose Crew Vehicle capture, and relocate an asteroid while at the same time emphasizing that development of the Orion Multi-Purpose Crew Vehicle (MPCV) is critical to the challenges coordinating with other NASA and non-NASA programs.


5 European Space Agency (ESA) to provide the MPCV Service Module, a critical associated with the Constellation Program. constrained funding for the MPCV has forced Program managers to adopt a less-than-optimal incremental development approach in which elements development and testing is delayed on other important but less time sensitive managing the Program as effectively as they can within a constrained has also delayed development of many of the life support systems required for crewed missions. control of the Program and could have a negative impact on the MPCV and Moreover, even after the MPCV is fully developed and ready to transport the Agency begins a program to develop landers and surface systems, NASA hardware, thereby delaying such development into the 2020s. we encouraged NASA managers to be as transparent as possible when


6 public recognize that incremental spacecraft development is not an optimal way to sustain a human space program. Further, NASA must enhance that the schedules for these interdependent programs remain aligned. NASA agreed with the general observations made in the report. Status of NASAs Development of the Multi-Purpose Crew Vehicle (IG-13-022, August 15, 2013) The International Space Station Source: NASA. NASAs Efforts to Maximize Research on the International Space Station federal entities and to foster commercial interest in conducting research. In 2011, NASA entered into a cooperative agreement with the Center for the million in annual funding the Agency provides to the organization, CASIS is and membership fees and encourage self-funded research on the Station.


7 April 1September 30, 2013 capabilities largely hinges on two factors: the ability of CASIS to attract reliable transportation to and from the Station for crew and cargo. from private entities in conducting research aboard the ISS in the absence of government funding. Moreover, CASIS suffered a series of early organizational issues that may have affected its initial fundraising efforts. from funds raised through donations and approving more self-funded NASA research aboard the ISS, we found that neither CASIS nor NASA had CASIS is achieving its goal of improving the return on investment in the ISS by increasing use of the national laboratory. amount of crew time available for research. research on the ISS. NASA concurred with our recommendation. NASAs Efforts to Maximize Research on the International Space Station (IG-13-019, July 8, 2013) Ongoing Audit Work NASAs Management of the Commercial Crew Program major challenges NASA must address to successfully implement the Program.


8 NASAs Efforts to Extend the Operational Life of the International Space Station Space Communications and Navigation Program transmit data to Earth or be commanded or controlled by people on Earth and space hardware worth tens of billions of dollars would be little more than 30 years, many of the systems suffer from an aging and fragile infrastructure. NASA is identifying and adjusting capabilities to meet mission requirements; facing the project. NASAs Efforts to Identify and Mitigate Near-Earth Object Hazards atmosphere. Although most of this material burns up upon entry, occasionally


9 management practices and governance. During this semiannual reporting period, we Audit of NASAs Information Technology Governance appropriately aligns authority and responsibility. investments, operates in an organizational structure that marginalizes the authority of the position, and cannot enforce security measures across Mission Directorates. Further, NASA purposefully limits the authority of the CIO position to preserve control by the Centers and Mission Directorates to rely on informal relationships rather than formalized business processes


10 CIO a direct report to the NASA Administrator and revise the job titles of Center and Mission Directorate CIOs to more clearly delineate roles and responsibilities; ensure renamed Mission Directorate CIO positions report directly to the Agency CIO; reevaluate the relevancy, composition, and purpose of the three primary governance boards; revise governance board charters to include all information critical to ensuring the effective use of the Administrator concurred or partially concurred with our recommendations. Review of NASAs Information Technology Governance (IG-13-015, June 5, 2013) NASAs Progress in Adopting Cloud-Computing Technologies a decreased need to buy hardware or build data centers. NASA projects that


11 Nebula: NASAs Cloud-Computing Data Center Source: NASA. practices in place to mitigate the chance that Agency operations may be disrupted, data lost, or public funds misused. management practices for acquiring and securing cloud-computing services. computing and potentially put NASA systems and data stored in the cloud moderate-impact systems NASA moved to a public cloud operated for 2 years centers to the cloud.


12 and oversee Agency-wide acquisition and deployment of cloud-computing services. In addition, we recommended the CIO direct all Center and Mission requirements, require NASA organizations acquiring cloud services to use contract vehicles with policy-compliant terms, and establish an oversight function to ensure that moderateand high-impact NASA systems and requirements are met. impact cloud service currently operating without authorization, we recommended that the system owner direct the service provider to develop system and contingency plans that comply with National Institute of NASAs Progress in Adopting Cloud-Computing Technologies (IG-13-021, July 29, 2013) Nigerian Phishers/Spammers Indicted Nigeria, for their involvement in a large, coordinated phishing and spamming send massive amounts of spam. Ongoing Audit Work Security of NASAs Public Websites A publicly accessible website allows anyone on the Internet anywhere in the vulnerabilities in software applications used by publicly accessible websites reduce the number of its publicly accessible websites.


13 NASAs Consolidated End User Services Contract Center-centric to an Enterprise-centric model when providing computers and Agency mission requirements. NASAs Compliance with Federal Information Security Management Act for Fiscal Year 2013 of 12 NASAand contractor-owned information systems for compliance with FISMA review have been addressed. to provide assurance that the Agency is developing and deploying safe and the Shuttle Challenger tragedy as part of an Agency-wide effort to provide the decommissioning of the Space Shuttle Program and completion of assembly of Security of NASAs Mobile Computing Devices


14 In the current environment of reduced budgets for Federal agencies, effective continues to focus its resources to help ensure that NASA engages in sound misconduct related to NASA contracts and grants. Security Firm Personnel Sentenced government contracts, including with NASA, intended for disadvantaged small businesses. In total, the fraudulent scheme perpetrated by the security conspiracy to commit fraud, and submitting a false application to the Small Civil Settlement with Government Contractor in electronic parts to resolve allegations under the False Claims Act that the company submitted false claims to the Department of Defense and NASA for defective and nonconforming aviation life-saving equipment. A joint Service revealed the contractor submitted claims for parts used on aircraft personnel restraint systems that it did not test in accordance with contractual voltage references, which are part of water-activated parachute releases used by


15 Former NASA Subcontractor Pleads Guilty to Fraud In September 2013, a Mississippi testing company was sentenced for Center. Several months earlier, a corporate representative pleaded guilty Contractor Enters into Civil Judgment they had failed to meet the two-thirds subcontracting limitation required University Enters into Civil Settlement to settle overcharges to NASA on an Intergovernmental Personnel Act absorb 20 percent of all costs associated with this IPA while NASA agreed to an overpayment to the university by NASA.


16 Former NASA Program Manager Agrees to Civil Settlement approve contract payments to a company with which he was negotiating employee was sentenced to serve 1 day of incarceration and 1 year of probation Ongoing Audit Work NASAs Management of Space Act Agreements agreements with diverse groups of people and organizations to advance wideAct Agreements. NASA currently has more than 1,000 Space Act Agreements its Space Act Agreements, including whether the Agency is accurately billing and collecting amounts from agreement partners and receiving fair and NASAs Use of Award-Fee Contracts with requirements, policies, and procedures and whether the Agency is effectively using award fees to motivate contractor performance.


17 NASAs Award Closeout Process determining whether NASA has procedures in place to ensure that award instruments close in a timely manner and in accordance with established NASAs Strategic Sourcing Program of sourcing strategies with the goal of acquiring goods and services in a more agencies to develop strategic sourcing plans that would result in reduced prices, reduced administrative costs, improved performance, and increased implementation of the Strategic Sourcing Program to determine whether it has resulted in cost savings. Audit of the Stratospheric Observatory for Infrared Astronomy Project for Infrared Astronomy (SOFIA) Project is approaching full operational NASAs Mission Operations Services Space-based mission operations have evolved over the years as both spacecraft and ground system technology have matured. As the capabilities of these data and control operational satellites with greatly reduced staff, which lowers


18 Infrastructure and facilities management has been a long-standing challenge for paying particular attention to identifying and removing unneeded or duplicative infrastructure. NASA completed this study in February 2012 and issued a report challenges. Since completing the study, the Agency has strengthened central authority over infrastructure decisions and initiated efforts to improve data management and better assess technical capability needs across the Agency. In light audit resources on this topic. NASAs Management of Energy Savings Contracts In response to Federal mandates to reduce energy consumption, several NASA Centers have entered into energy savings performance contracts (energy contracts) with private companies to fund conservation measures and provide from the conservation measures after the contract ends accrue to the agency. on the savings guarantees contained in these contracts and for adjusting the contracts if they fail to do so. 10 or more years. At the time of our audit, two of the contracts had ended planned at other Centers.


19 Although Ames has not yet needed to adjust its energy contracts to account for facility renovation or demolition, we found that the Center appears to be mismanaged its contract by not requiring the contracted company to submit ensuring that energy savings would cover the additional costs. Further, an effective training program regarding administration of energy contracts. As verify that the conservation measures installed under the contract resulted in sound management practices, we recommended NASA ensure that revise Agency policy to require that estimates for renovation or demolition of facilities include the loss of guaranteed savings from conservation measures installed pursuant to energy contracts; and ensure that procurement and technical staff who are responsible for awarding and administering energy contracts are adequately trained. standards and that implementing any changes to the contract would be almost NASAs Management of Energy Savings Contracts (April 8, 2013, IG-13-014) Ongoing Audit Work NASAs Environmental Remediation Efforts NASA is required by law to evaluate the environmental and safety impacts associated with asset disposition as well as to properly clean up chemicals has an effective program to address those needs.


20 NASAs Decision Process for Space Launch System Core State Testing Directorate approved a plan to provide funding to refurbish the B-2 test stand Audit of NASAs Launch Support and Infrastructure Modernization Efforts is refurbishing and modifying the infrastructure at the Kennedy Space launcher platform and tower, the Vehicle Assembly Building, and launch pad


21 Audit of Selected NASA Conferences NASA hosts conferences attended by its employees, contractors, industry partners, employees of other Federal agencies, and the public. From October 2010 through September 2012, NASA sponsored or co-sponsored held in San Francisco, including the planning process; site selection; transportation, lodging, meal, and other costs; and funding relationships with high-cost NASA conferences for similar issues. generally complied with Federal and Agency requirements in connection with made by the National Institute of Aerospace Foundation (Foundation). accepting donations from the Foundation without following Agency procedures governing acceptance of gifts from outside parties. In addition, we found that with an awards luncheon when calculating the value of the meal to NASA for all conference-related costs and that planners did not consistently conduct required cost comparisons of possible conference sites. Finally, we found


22 planning and conference costs by requiring increases of 10 percent or more three conference sites, and develop a methodology for gathering costs directly billed to NASA for contractor employees who attend NASA-sponsored Audit of Selected NASA Conferences (July 18, 2013, IG-13-020) Ongoing Audit Work NASAs Compliance with the Improper Payments Information Act for Fiscal Year 2013 the accuracy and integrity of Federal payments. In this mandated audit, we improper payments audits. NASAs FY 2013 Financial Statements


23 Evaluation of NASAs Implementation of Executive Order interests to protect certain information from unauthorized disclosure. Public procedures, rules, regulations, or management practices that may be implementation and management of a uniform system for classifying, accounting for, safeguarding, and declassifying national security information requirements, its implementing directives do not require Agency personnel found instances in which Agency personnel were not consistently following not met, and self-inspections that were not fully implemented. Although these


24 conduct a second evaluation by September 30, 2016, to review the actions Information (IG-13-023, September 26, 2013) Former Contract Employee Sentenced for Theft for stealing government property. From October 2011 through November Spouse of NASA Employee Convicted of Making False Statements of identity theft and therefore he was not responsible for the misuse of his without pay for misuse of his government credit card. Former NASA Contractor Security Guard Sentenced


25 Former NASA Contractor Sentenced In May 2013, a former contractor employee of the Marshall Space Flight Ongoing Audit Work NASAs Management Strategy for Conducting Aeronautics Research control systems, de-icing devices, and aircraft noise reduction. Over the past research and technology objectives.


26 CONGRESSIONAL TESTIMONYNASAs Aging Infrastructure approach to managing its infrastructure, leading Centers to compete for requirements, political pressure, and inadequate funding have impeded the have impeded past efforts. Accordingly, an outside process similar to the NASAs Infrastructure: Enabling Discovery and Ensuring Capability


27 LEGAL ISSUESWhistleblower Protection Training whistleblower protections for contractor, subcontractor, and grantee Ethics Training of interest; outside employment activities; impartiality in the performance spending and government credit card purchases; and the duty to report fraud, waste, and abuse.


28 REGULATORY REVIEW the following: NPD 1000.5B, Policy for NASA Acquisition the development of the systems, research, services, construction, and supplies NPD and made several recommendations intended to better align the NPD the NASA Strategic Sourcing Program. NPR 2830.1A, NASA Enterprise Architecture Procedures to assist the Agency in more effectively integrating and implementing EA audit report, NASAs Information Technology Governance ( audits/reports/FY13/IG-13-015.pdf ).


29 NFS 1803.903, Whistleblower Protection for contractor and subcontractor employees under the National Defense NPR 1600.3, Paragraph 3.16, Whistleblower Appeal Review Process security whistleblowers.


30 OUTREACH ACTIVITIES en provide the organization with recommendations for secure and cost effective Staff from the OA Financial Management and Mission Support Directorates Federal policies relating to grants and cooperative agreements. statutory law enforcement authority. management, including impacts of accounting and auditing standards, as well


31 en In May 2013, a member of the OA Financial Management Directorate Audit Clearinghouse, and independent public accountants met to discuss current issues and share ideas involving single audits.




33 Appendixes ... ........... ......... .......... ............................. .............................






36 Table 1: Audit Products and Impact eight products. . IG-13-022 . IG-13-019 . IG-13-016 . IG-13-021 . IG-13-015 . IG-13-014 . IG-13-020 . IG-13-023 .


37 Table 2: Prior Audit Recommendations Yet to Be Implemented semiannual reporting period. a. New Since Last Reporting Period . OPEN CLOSED IG-13-019 IG-13-016 IG-13-021 IG-13-015 IG-13-014 IG-13-020 IG-13-023 a The OIG is reviewing managements request for closure.


38 b. Reported in Previous Semiannual Reports . IG-11-016 IG-13-006 IG-12-017 IG-12-006 IG-11-017 IG-10-019 IG-10-013 IG-10-013-a IG-13-013 IG-13-007 IG-13-008 IG-12-020 IG-12-008 IG-11-024


39 . IG-13-011 IG-13-005 IG-13-003 IG-13-002 IG-12-015 IG-12-010 IG-12-019 IG-12-018 IG-12-016 . . IG-12-012 IG-12-013


40 . IG-09-017 IG-11-026 IG-11-023 IG-11-004 a The OIG is reviewing managements request for closure.b The OIG closed both recommendations after the end of the reporting period on October 23, 2013.c The OIG is working with management to determine a revised target closure date.Table 3: Audits with Questioned Costs


41 Table 4: Audits with Recommendations that Funds Be Put to Better Use Table 5: Status of A-133 Findings and Questioned Costs Related to NASA Awards Table 6: Legal Activities and Reviews


42 a. Complaint Intake Disposition d 66 177 Total 82 39 10 112 243a b c Management referrals are complaints referred to NASA management for which a response is requested.d civil investigation.b. Full Investigations Opened this Reporting Period a en c. Cases Pending at End of Reporting Period Total 251en d. Qui Tam Investigations Note: The number of qui tam investigations is a subset of the total number of investigations opened and pending.en e. Judicial Actions en f. Administrative Actions


43 Total 17 Total 27 Total 6 Total 8en g. Investigative Receivables and Recoveries Total $15,021,518 Total to NASA $1,049,317a Includes amounts for cost savings to NASA as a result of investigations.


44 Defense Contract Audit Agency Audits of NASA Contractors reimbursable basis. DCAA provided the following information during this period on reports involving NASA contract activities. DCAA Audit Reports Issued report recommendations usually result from negotiations between the contract negotiates recoveries with the contractor after deciding whether to accept or reject the questioned costs and recommendations for funds to be and funds to be put to better use included in DCAA reports issued during this semiannual reporting period and the amounts that were agreed to during the reporting period.Table 8: DCAA Audit Reports with Questioned Costs and Recommendations that Funds Be Put to Better Use; Amounts Agreed To statistics on audits that resulted in contracts not awarded or in which the contractor was not successful.a Amounts agreed to include amounts from reports issued in previous semiannual reporting periods.


45 include in their semiannual reports any peer review results they provided or received during the relevant reporting period. Peer reviews are required every 3 years. In compliance with the Act, we provide the following information. outstanding recommendations from the previous peer review conducted by our during this semiannual period. In November 2011, the Federal Deposit recommendations outstanding from this review.


46 Administrative Investigation. An administrative investigation is an inquiry into allegations of misconduct, wrongdoing, or administrative matters, the results of which could lead to disciplinary action. A questioned cost that management, in a management decision, has sustained or agreed should not be Investigative Recoveries. Investigative recoveries are the total dollar value of (1) recoveries during the course of an investigation (before any criminal or civil and (3) out-of-court settlements, including administrative actions resulting in noncourt settlements. Investigative Referrals. Investigative referrals are cases that require additional agencies at the Federal, state, or local level or to agencies for management or administrative action. An individual case may be referred for disposition to one or more of these categories. Judicial Actions. Investigative cases referred for prosecution that are no longer and convictions represent the number of individuals or organizations indicted or convicted (including pleas and civil judgments). Latest Target Closure Date. the agreed-upon corrective action(s) necessary to close the audit recommendation(s). are necessary.


47 A cost that regulation, contract, grant, cooperative agreement, or other agreement or document Recommendation Resolved. A recommendation is considered resolved when Recommendation that Funds Be Put to Better Use (the IG Act of 1978 (1) reductions in outlays; (2) deobligation of funds from programs or operations; (3) withdrawal of interest subsidy costs on loans or loan guarantees, insurance, or in this category may not always allow for direct budgetary actions but generally allow the Agency to use the amounts more effectively in the accomplishment of program objectives.) Qui Tam. awarded to the whistleblower. An unsupported cost is a cost the cost was not supported by adequate documentation.


48 ACES CASIS Center for the Advancement of Science in Space CIGIE CIO DCAA Defense Contract Audit Agency DIG DOJ EA Enterprise Architecture ESA European Space Agency FAR FISMA Federal Information Security Management Act FY GAO GSDO HR IG IPA Intergovernmental Personnel Act Agreement IPERA IPIA Improper Payments Information Act ISS International Space Station IT IV&V MPCV Multi-Purpose Crew Vehicle NFS NPD NASA Policy Directive NPR OA OI OIG OMB OMP ORCA OSIRIS-Rex SBIR SLS


AMES DRYDEN FLIGHT RESEARCH CENTER GLENN RESEARCH CENTER GLEN RESEARCH CENTER PLUMBROOK STATION GODDARD INSTITUTE FOR SPACE STUDIES GODDARD SPACE FLIGHT CENTER JET PROPULSION LABORATORY JOHNSON SPACE CENTER KENNEDY SPACE CENTER LANGLEY RESEARCH CENTER MARSHALL SPACE FLIGHT CENTER STENNIS SPACE CENTER ALABAMA CALIFORNIA FLORIDA LOUISIANA MARYLAND MISSISSIPPI NEW MEXICO NEW YORK OHIO TEXAS VIRGINIA WEST VIRGINIA Ames Research Center California Jet Propulsion Laboratory California Johnson Space Center Texas Stennis Space Center Mississippi Marshall Space Flight Center Alabama Kennedy Space Center Florida Langley Research Center Virginia NASA Headquarters Washington, DC Goddard Space Flight Center Maryland Glenn Research Center Ohio NASA OIG Headquarters Ames Research Center Glenn Research Center Goddard Space Flight Center Jet Propulsion Laboratory Johnson Space Center Kennedy Space Center Langley Research Center Marshall Space Flight Center Mail Stop M-DI Stennis Space Center Stennis Space Center, MS


OIG HOTLINE1 / TDD: 1 GO TO: WRITE: NASA Ofce of Inspector General P.O. Box 23089, LEnfant Plaza Station Washington, DC 20026 WEBSITE: